Automatic Merchandiser

OCT 2014

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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ive Star Food Service, Inc. is a rarity in the business world. It is a company that does it all and does it well. In just over twenty years the Canteen franchise has grown as a leader in vending, micro markets, offce coffee service and dining. Five Star operates each segment under its founding principles of integrity, quality and customer focus, and it shows through its continuous expansion. Today Five Star employs more than 800 people and operates 11 branches, a culinary center, 200 vending routes and 36 cafeterias. At Five Star, the consumer is at the front of every decision made and that means the company is not afraid to invest in ideas or business solutions that will beneft its cli- ents. Five Star has grown through a series of 53 acquisitions and more recently has focused its attention on the growth of its micro market segment. In a little over three and a half years, Five Star has opened 327 markets and expects to reach 400 by the end of its current fscal year. Acquisition and retention Formed in 1993, Five Star has grown to be a full service operator that offers cus- tomers vending, micro markets, offce coffee and dining programs in Georgia, Tennessee, Alabama and Kentucky. Today, the company is privately held by Naviga- tion Capital Partners and senior manage- ment, including Alan Recher, president and chief executive offcer. Recher joined the company in 2005 as chief operating offcer and advanced to his current posi- tion in 2008. Since then, the company has experienced signifcant growth, driven by an intense focus on new business acqui- sition and client retention. "Our growth has been fostered by the creation of a sales culture at all levels within Five Star," said Recher. The company has invested heavily in the expansion of a professional sales and marketing department to support its many growth initiatives, all with the principle of keeping the customer frst. "Five Star has distinguished itself in the markets we compete by always thinking of the customer," continued Recher. "We pride ourselves on outstanding customer service. Our high customer satisfaction scores are being driven by our culture's sense of urgency." Three years ago, Five Star invested in an idea that would not only conform to consumer demand, but would also help the company solidify future growth: micro markets. F In twenty years Five Star Food Service has grown to be one of the largest full-line vending, micro market, OCS and food services providers in the U.S. through an intense emphasis on customer satisfaction and business investments, such as micro markets, that solidify its future growth. By Adrienne Zimmer, Assistant Editor Operation profle: Five Star Food Service Owners: Navigation Capital Partners and senior management Headquarters: Chattanooga, TN Number of employees: 800 Number of routes: 200 vending routes, 36 cafeterias and 327 micro market routes Micro market provider: 365 Retail Markets Annual revenue: Not revealed October 2014 VendingMarketWatch.com Automatic Merchandiser 37 O P E R A T I O N P R O F I L E Mark Stephanos (left) leads the company's micro market line of business as vice president of micro markets while Gregory McCall runs Five Star's sales and marketing initiatives as the senior vice president of sales and marketing.

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